Could someone help me understand prices on eBay.co.uk?

walkingupwards · #1 11-20-2018

Sellers on eBay.co.uk just boggle my mind to be honest!! The prices are so damn low I have no idea how the heck they're making any kind of profit.

Go to eBay.co.uk and search for "Luxury Ultra Slim Shockproof Hybrid Silicone 360". You will see a phone case being sold for 2.95 £.

Let's break down the price of this case:

eBay fees (10%) = ~ .29 £

PayPal fees = ~ .35 £

VAT = ~ .47 £

Shipping and the cost of the item shall further be deducted. The case in the above example has a price range on Alibaba between 0.25 to 0.50 $.

I would really appreciate some input from UK-based sellers. Why are the prices in the UK so damn low? Had there been a race to the bottom or what?

**SaiJin** · #2 11-20-2018

It's possible these are chinese sellers that use epacket which means they pay almost nothing to ship or they are just selling at a loss to gain customer basis.

walkingupwards · #3 11-20-2018

Quote:

Originally Posted by SaiJin

It's possible these are chinese sellers that use epacket which means they pay almost nothing to ship or they are just selling at a loss to gain customer basis.

I don't think so. According to most listings, the item will be delivered within a couple of days. The item's location is also in the UK for +90% of the listings.

MM78 · #4 11-20-2018

Quote:

Originally Posted by walkingupwards

I don't think so. According to most listings, the item will be delivered within a couple of days. The item's location is also in the UK for +90% of the listings.

Even if they are not being shipped from China, a lot of Chinese sellers can get the same items for next to nothing, then ship in bulk to the UK. So they can still sell for cheap.

phaz0rz · #5 11-20-2018

walkingupwards : Can someone help me e?

phaz0rz : You just pop it in your mouth, swallow, and buckle up bro!

walkingupwards · #6 11-20-2018

Quote:

Originally Posted by MM78

Even if they are not being shipped from China, a lot of Chinese sellers can get the same items for next to nothing, then ship in bulk to the UK. So they can still sell for cheap.

That question is also on my mind. How would it be possible to get the same items while paying the price these Chinese sellers pay? I am starting to believe that buying that cheap online is near impossible, one might need to take a trip to China

JamesNorth101 · #7 11-20-2018

A lot of the time things like any are sold for small profit as feedback buffers

It helps them rank better on some of their other items which they may make more profit on

MM78 · #8 11-20-2018

Quote:

Originally Posted by walkingupwards

That question is also on my mind. How would it be possible to get the same items while paying the price these Chinese sellers pay? I am starting to believe that buying that cheap online is near impossible, one might need to take a trip to China

Well, all you gotta do is head over to China, find a supplier who will sell you the items for next to nothing....easy.

rsot · #9 11-21-2018

Some sellers will take loses on some smaller goods while make a killing profit on high end popular listings if they are selling 100s of items...

walkingupwards · #10 11-21-2018

Quote:

Originally Posted by MM78

Well, all you gotta do is head over to China, find a supplier who will sell you the items for next to nothing....easy.

I can't travel to China due to many reasons

From your experience, is it possible to get the same prices online?

JamesNorth101 · #11 11-21-2018

If you place a very large order then you can get close

walkingupwards · #12 11-21-2018

Quote:

Originally Posted by JamesNorth101

If you place a very large order then you can get close

So offline prices will always be lower, right?

phaz0rz · #13 11-21-2018

You get better prices by contacting suppliers directly on whatsapp compared to contacting them on Alibaba, because they save on selling fees.

It's also really helpful to keep an open line of communication with your supplier. Talk to them frequently and build up a business relationship. Over time they will reduce unit prices to help you out, if you prove you're a worthwhile customer.

JamesNorth101 · #14 11-21-2018

Quote:

Originally Posted by walkingupwards

So offline prices will always be lower, right?

Dealing with a factory directly in person will always be cheaper than dealing with a middle man online

walkingupwards · #15 11-21-2018

Quote:

Originally Posted by JamesNorth101

Dealing with a factory directly in person will always be cheaper than dealing with a middle man online

This is my main suspicion. I am getting the feeling that all the so-called "Factories" on Alibaba are not really factories.

phaz0rz · #16 11-21-2018

Quote:

Originally Posted by walkingupwards

This is my main suspicion. I am getting the feeling that all the so-called "Factories" on Alibaba are not really factories.

30% real factories, 70% middlemen/trading companies

You have the learn the questions to ask in order to tell if you're really talking to a factory.

It costs a ton to have a selling account there. So if you do find a dropshipper they would have to be a really big dropshipper.

walkingupwards · #17 11-21-2018

Quote:

Originally Posted by phaz0rz

30% real factories, 70% middlemen/trading companies

You have the learn the questions to ask in order to tell if you're really talking to a factory.

It costs a ton to have a selling account there. So if you do find a dropshipper they would have to be a really big dropshipper.

Is the thing on Alibaba called "Onsite Checked" a legit thing? Or is it not trustworthy enough?

phaz0rz · #18 11-21-2018

It's legit and reliable.

If they're a gold supplier with the onsite check badge (all gold suppliers have it now), that means Alibaba and a third party have verified the production facility exists.

storas · #19 11-21-2018

Race to the bottom is your correct answer. Too many uneducated uncalculated freshly cooked businessman.They give up, then the new ones take their place.

walkingupwards · #20 11-21-2018

Quote:

Originally Posted by storas

Race to the bottom is your correct answer. Too many uneducated uncalculated freshly cooked businessman.They give up, then the new ones take their place.

The accounts I am talking about have a minimum of 10k in positive feedback a month and they all specialize in phone cases and screen protectors.

The items will be delivered within a couple days inside the UK and prices are near the bottom!!

I have been shopping around at Alibaba and the prices I am getting there from the alleged "factories" make it impossible to make a profit (provided the items will be sold at the prices seen at eBay.co.uk).

This is really boggling my mind. No sane person could be handling more than 20k sales a month just for fun and feedback. They must be making a profit, but I don't know how

I don't know, maybe they're bringing a profit of 10 cents or something like that. What a joke that eBay allowed these races to the bottom take place.

The weird thing is, I have witnessed these so low prices only on eBay.co.uk. On eBay.com or eBay.de the prices are somehow similar to the Amazon ones.

JamesNorth101 · #21 11-21-2018

If they are selling that levels they will be paying much lower eBay and PayPal fees and postage will cost a lot less as well